Eleven solar panel manufacturers in export oriented zones are on the verge of shutting down and another four have already downed shutters saying the import duty structure has rendered them noncompetitive in the local and export markets.
According to Economic Times, Subrata Mukherjee, director at Sova Power and founding member of the All India EoU Solar Manufacturers said that If export oriented units sell their panels in the domestic market, they become un-exempt from duty exemption while their counterparts from Social Economic Zones and Domestic Tariff Areas’ remains exempt from such duties.
This has resulted in a large number of units in export oriented units on the verge of closing down their operations while some has already been shut because they have been rendered uncompetitive.
According to Cecil Anthony, director at Synergy Electric and a member of the Association that has been recently formed, the market price for solar panel of one watt is around Rs 30 of which the cost of materials including cost of assembly and other raw materials come to around Rs 25 a watt.
He said that they are being asked to pay a duty of Rs 2. Another Rs 2.75 is needed for paying for manpower, admin and power costs. Leaving us with 75 paise per watt which is not enough to pay finance costs.
